Insanity

*/By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc./*

*/Follow us on Twitter/* [1]

Einstein is well known for stating that insanity is doing the same thing over
and over again and expecting a different result.  That is true if you are
dealing with something that is simple – such as using the coffee maker, or
even something complicated such as using a computer.  However risk is
complex, and one thing that complexity theory tells us is that you get a
different result every time.  Therefore Einstein was wrong – at least on
this one as it applies to risk management.  As risk managers we have to
expect different results each and every time we perform an action or create a
rule or a regulation.  To do otherwise would be insane.


[1] https://twitter.com/rsdsolutions